A Tesla Cybertruck is parked outside of a dealership on November 14, 2024 in Austin, Texas.
Brandon Bell | Getty Images
This report is from today’s CNBC Daily Open, our international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Like what you see? You can subscribe here.
What you need to know today
Individual stocks sway indexes
On Monday, the S&P 500 rose 0.4% and the Nadaq Composite added 0.6%, mostly spurred higher by Tesla. Shares of Goldman Sachs and Salesforce fell, causing the Dow Jones Industrial Average to drop 0.1%, Europe’s regional Stoxx 600 ended flat after recouping losses.
Autonomous vehicles on the agenda
Tesla shares jumped 5.6% after it was reported that President-elect Donald Trump’s incoming administration plans to draw up a federal framework that will regulate self-driving vehicles. The regulatory framework would make adoption of self-driving cars much easier. CNBC could not independently verify the report.
Super Micro aims at Nasdaq compliance
Super Micro Computer has hired BDO as a new auditor and submitted a plan to Nasdaq to ensure compliance with the exchange, the company said in a statement. Shares closed 16% higher and were up over 38% in after-hours trading. Super Micro’s market capitalization has tumbled from around $70 billion at its peak to $12.6 billion as of Monday after investors learned of the company’s compliance troubles.
‘Europe-first’ approach
European countries should adopt a “Europe-first” approach to technology, especially in response to Trump’s protectionist inclinations, tech CEOs told CNBC. U.S. and Chinese companies “have been playing extremely unfairly for the last 20 years,” said Andy Yen, CEO of VPN developer Proton, while Europe has a mindset that it needs to be “fair to everybody.”
[PRO] S&P offers sharp upside
Wall Street bank Morgan Stanley sees the S&P 500 hitting 6,500 next year on the back of more rate cuts and positive corporate sentiment galvanized by the election results. That’s about a 10% upside from Monday’s close. But investors should still be wary of certain headwinds, warned the bank’s Chief U.S. Equity Strategist Mike Wilson.
The bottom line
Investors are waiting with bated breath for Nvidia’s earnings report on Wednesday.
“The star this week is our friend Nvidia,” said Kim Forrest, chief investment officer at Bokeh Capital Partners, highlighting its importance to all the key indexes with its recent inclusion in the Dow. “Unless some information comes out before then, the market is going to wait and see what’s going on with Nvidia.”
Shares of Nvidia fell 1.3% on a report from The Information that the company’s new Blackwell chips tend to overheat when connected to custom servers. Nvidia’s drop had the largest negative effect on the S&P and Nasdaq, dragging down the former by 0.52 points and the latter by 23 points.
However, Tesla — which has mostly seen large gains since Trump won the elections — managed to more than make up for Nvidia’s loss. Tesla shares jumped 5.6%, contributing to a 0.62-point increase in the S&P and 47-point rise in the Nasdaq.
That helped the S&P achieve its first winning day in three, and the Nasdaq break its four-day losing streak.
“The market is set up well for equities, and investors are not going to see the pullback they want,” said Andrew Slimmon, Morgan Stanley Investment Management’s head of the applied equity advisors team.
For now, despite the market’s losses last week, “a strong economy, the Fed continually cutting rates, and strong Q3 earnings” will provide support for stocks, said Slimmon.
— CNBC’s Samantha Subin and Pia Singh contributed to this report.